The following table shows the balances from various accounts in the adjusted trial balance for Decoma International Corp. as of December 31, 2020:

Required

1. Assuming that the company?s income tax rate is 25%, what are the tax effects and after-tax measures of the items labelled as pre-tax?

2. Prepare a multi-step income statement for the year ended December 31, 2020.

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Debit Credit $ 160,000 a. Accumulated depreciation, buildings. b. Interest income . 8,000 c. Cumulative effect of change in accounting policy (pre-tax). d. Sales.. 36,800 1,056,000 e. Income taxes expense.. f. Loss on condemnation of property.. g. Accumulated depreciation, equipment h. Other operating expenses. i. Depreciation expense, equipment. j. Loss from settling a lawsuit.. 25,600 88,000 131,200 40,000 14,400 k. Gain from settling a lawsuit. 27,200 I. Loss on sale of office equipment. 9,600 m. Loss from operating a discontinued operation (pre-tax). 48,000 n. Depreciation expense, buildings. o. Correction of overstatement of prior year's expense (pre-tax) p. Cost of goods sold. q. Loss on sale of discontinued operation's assets (pre-tax). r. Accounts payable. 62,400 19,200 416,000 72,000 52,800